But didn't find anything to my specific question.There's a real estate agent claiming he has an all-cash buyer for one of my properties.

Holding onto it is a smart decision, and you're entering property investing in a solid position.To get started, focus on ensuring that the rental income will cover your mortgage, taxes, insurance, and any maintenance costs, leaving room for profit.

I’m trying to have him see the bigger picture if he puts money in tax advantage accounts first and strategically uses a tax professional, that he will be able to offset his high tax bracket w2.

In fact, you’d have no choice but to claim material participation because that is exactly how the regulations read and require. 

Just trying to defer some of the income tax until next year.

But I would be missing items necessary for taxes, etc.

Do you know if it is possible to have a tax deduction for interest/profits earned on promissory notes/PML?

Please note, I did not include the tax benefits from deprecation.

@George Bell my LLC's do two main things:1) Hide my identity, so tenants can't easily find me. 2) Separate my business and personal assets, income & expenses, not so much for tax purposes, but to avoid IRS issues.-- Just audited by IRS this summer for first time ever and had no issues!

Property taxes are next to nothing.